Freakonomics & Listing Creativity - Deja Vu

Have any of you read Freakonomics?  In it economist Steven Levitt breaks down various seemingly unmeasurable activities into the explainable and measurable.  I’m not mentioning the book because of its vaguely intriguing chapter on drug dealers in Chicago, but rather because of the chapter on real estate, and, more specifically the question – Are realtors working in our best interest?  By analyzing home sale of realtors and their clients.  The data showed that realtors keep their personal homes on the market longer and tend to get more money (less discount versus asking price) than non-realtors.  He delves into a rationalization of the motives of realtors.  $10k or $15k, or $3k to you or I as a seller may mean a lot.  To our realtors this is a couple of Starbucks’ vanilla lattes and not worth the extra time.  Sell now!  When the motive is combined with the data, Levitt concludes that realtors are not working for us.

Freakonomics then moves beyond the sales data and looks at the specific word choices used by realtors to sell homes.  Which brings us to this house.  We wrote about this home that is just “One Block away from a fabulous sound view!” back in August.  Well, it’s been relisted at a new price.  If you’ve read Freakonomics, it probably jumps out at you how vague the description is.  Levitt argues that specifics sell homes at a better price than vague adjectives.  Maple cabinets, stainless steel appliances, oak floors – these are specific details that provide imagery that may be associated with quality.  Crown molding, wainscoting, and picture rails are better than “charming.”  The hardwood floors on the first floor are probably fir.  The appliances are probably something.  “Updated” tells me very little.  The only specific given to us is Pergo – and the realtor has chosen to emphasis that it’s a laminate.  Why?

  So now I’m thinking about our house.  If we were to sell today, what could we say about it?  Ten feet short of a great water view.  Seasonal peek-a-boo water view in the master bedroom for those over six feet tall standing on their tiptoes.  Stainless steel appliances in a Home Depot kitchen.  Chimney in the living room provides a loft like feel without the hassle of a real fireplace.  One room short of a great floor plan. 

Freakonomics is available from Amazon